Euro May Benefit if ECB Signals Further Rate Hikes, Commerzbank Says

According to Jin10, Commerzbank's Thu Lan Nguyen said the euro should benefit if the European Central Bank sends a strong signal that it is willing to raise rates further as rising Middle East tensions push up energy prices. Market expectations are for the ECB to leave rates unchanged on Thursday and to raise them again in September. She said it is crucial whether the ECB clearly emphasizes that it is prepared to continue raising rates after September, given higher energy prices. If the U.S.-Iran conflict escalates further, she said, that would be a key factor limiting downside for the euro against the dollar.